- Louisiana Car Insurance
- By:Marie Wakefield
Where ever you live, you should choose a company that is financially sound, has a history of providing good service, and charges a fair rate. Each state has its own regulations regarding coverage. And the companies alter their policies to reflect these differences.
Under Louisiana law, you must carry liability coverage on any automobile you own. Liability insurance covers bodily injury or property damage caused by you, your family members, and others driving your vehicle with your permission. You and your family members are also covered when driving another person's automobile including rental private passenger vehicles.
Louisiana law requires that all registered owners of an automobile carry liability insurance. In Louisiana, each vehicle is required to have 10/20/10 liability limits. Those limits provide payments of $10,000 for bodily injury to one person, $20,000 for bodily injury to more than one person in a single accident, and $10,000 coverage for damage to someone else's vehicle or other property.
The Louisiana law known as 'No Pay, No Play' prohibits uninsured motorists from collecting the first $10,000 in property damages and the first $10,000 in personal injuries regardless of who causes the accident. This law also includes a provision that may allow you to waive your right to make a legal claim for pain and suffering if you buy economic-only uninsured motorist coverage.
Uninsured/Underinsured motorist coverage pays benefits to you if your car is hit by a driver who has no insurance or too little insurance to pay for the full amount of your injuries. Any bodily injury you or an occupant of your vehicle suffers due to an accident caused by another driver is covered under this policy. Hit-and-run drivers may be classified as uninsured motorists if there is a disinterested witness to the accident.
You may choose to purchase uninsured motorist economic-only coverage. This coverage is the same as uninsured motorist coverage except that it covers only the actual costs of injuries to you and the occupants of your vehicle. Pain and suffering are not included under this coverage.
Uninsured/Underinsured motorist property damage coverage provides for repairs to your vehicle if you are in an accident with an uninsured driver. A $250 deductible applies under this coverage, and your recovery is limited to $10,000 or the actual cash value of the vehicle, whichever is less. If your policy includes collision insurance, this coverage is not available.
The Louisiana Automobile Insurance Plan allows companies to write auto liability insurance for persons who have been turned down when they tried to get coverage through the regular channels. This assures the availability of insurance to everyone licensed to drive in this state.
Uninsured motorists are subject to penalties such as fines, limited recovery of damages, and impoundment of the uninsured vehicle. Motorists who fail to provide proof of insurance can have their vehicles immediately impounded or have their license plates removed and a yellow sticker affixed to the back windshield of the vehicle. The motorist is then given three days to provide proof of insurance to the Office of Motor Vehicles. After three days, if the motorist is stopped again, the officer can impound his or her vehicle until proof of insurance is given and all towing and reinstatement fees are paid. The fines range from $75 to $100 on the first conviction, $100 to $250 on the second conviction and up to $700 on each conviction after that.
In Louisiana when you purchase a new auto insurance policy, the insurance company may cancel it within 60 days. If it is canceled for nonpayment of premium during that time, the company must give you a 10-day notice. If it is canceled for any other reason, such as a traffic violation or an at-fault accident, a 20-day notice is required.
A company cannot cancel your auto insurance policy if it has been in effect for more than 60 days or is a renewal unless:
You fail to pay your premium.
You file a fraudulent claim.
You or a member of your household has a drivers license or motor vehicle registration suspended during the policy period.
After the 60-day period, if a company cancels your policy because you fail to pay a premium, it must give you a 10-day notice in writing. For any other reason, you must be given a 30-day notice in writing by certified mail. If your insurance company decides not to renew your policy, it must provide you with notice 20 days prior to the policy's ending date. Your company is required to give you the reason for cancellation or non-renewal if you request it in writing. Within 30 days of cancellation, the company must refund all unused premiums that did not pay for coverage.